The owner of lingerie label Agent Provocateur, investment group 3i, has implemented a restructuring strategy and has written down the value of its investment, as well as having to give it a £4 million cash boost.
In its half-year results statement on Thursday, 3i said Agent Provocateur continues to be impacted by declining luxury spend in a number of its key markets. It added that the effect of this has been “compounded by the inconsistent execution of its recent store expansion program and the discovery of accounting issues.”
3i said it is supporting the new management team to put in place a new strategic plan, which involves a restructuring of the business. But it added that “Agent Provocateur is still a valuable brand and, as part of this restructuring, we have provided further investment of £4 million in the quarter to 30 September 2016. Reflecting these challenges, we reduced the value of our investment by £39m.”
The changes will mean store closures, job cuts at its HQ and a “phase down” of its L’Agent diffusion line. It is also believed there will be a new focus on wholesale and a targeting of key Asian markets.
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